Michigan iGaming Has Record Revenue, Websites Outperform Detroit Casinos
Posted on: May 18, 2022, 01:38h.
Last updated on: May 18, 2022, 01:58h.
Michigan iGaming platforms reported gross gaming revenue (GGR) of $132.4 million in April. It’s the best month on record for the state’s online casinos since their operations began in late January of 2021.
The Michigan Gaming Control Board (MGCB) reported that April iGaming narrowly topped the state’s previous all-time online high of $131.7 million, set in March. Last month’s performance was a 34% premium on April 2021.
April was the third month in a row that Michigan iGaming hit a new monthly high. At $132.4 million from interactive slots and table games, including poker rake, Michigan’s online gaming industry is now second only to New Jersey.
New Jersey iGaming totaled $136.8 million in April ’22, while Pennsylvania placed third with around $113.1 million from internet gamblers.
Along with the iGaming numbers, the MGCB announced this week that April sports betting revenue from online and in-person operations totaled $30.7 million.
iGaming and sports betting combined to win $163.1 million last month. The expanded gaming verticals were both authorized in 2020 and commenced operations in early 2021,
Online Tops Brick-and-Mortar
Michigan’s commercial land-based gaming industry is limited to the three Detroit casinos.
MGM Grand, MotorCity, and Hollywood Casino at Greektown reported brick-and-mortar GGR of approximately $118.8 million last month. That means online slots and table games won $13.6 million more in April ’22 than the three physical casino floors.
However, iGaming is benefiting the Detroit casinos, as their iGaming sites are dominating the online market. BetMGM, MGM Grand’s iGaming operator, reported nearly $50 million in April online revenue. BetMGM’s sports betting operations additionally led the state with about $7.2 million.
FanDuel, MotorCity’s iGaming and sportsbook partner, came next. FanDuel won $18.9 million from online casino players and $15.6 million from sports bettors.
Hollywood isn’t faring quite as well online, but is still reaping the benefits of the expanded gaming. The casino’s online iGaming site operated by Penn National Gaming won $5.2 million from internet slots and tables. Hollywood’s Barstool Sportsbook kept about $1.1 million of players’ bets.
Tribal casino operators have also ventured online for iGaming and sports betting. Twelve tribal internet casinos reported GGR of $58.3 million last month. Their sportsbook operations reported revenue of $6.8 million.
States with legal online casino gambling are realizing the sizeable tax benefits of regulating such gaming. The MGCB reveals that the state has collected $88.9 million in iGaming taxes through the first four months of 2022.
The state has also benefited from sports betting to the tune of $3.4 million, bringing the state’s tax share of iGaming and sports betting to $92.3 million this year. By comparison, state tax revenue from the three Detroit casinos so far this year totals just $35 million.
Detroit is also allocated a share of the sports betting haul. The city has received $1.9 million from sports betting so far this year. Detroit also receives tax revenue from the three online casinos tethered to the three downtown casinos. Online gaming tax receipts from MGM, MotorCity, and Hollywood total $24.4 million for January through April ’22.